Tokyo stocks recouped earlier losses to end higher Friday, reflecting a rise in Dow Jones Industrial Average futures in off-hours trading.
The 225-issue Nikkei average of the Tokyo Stock Exchange gained 171.02 points, or 0.74 percent, to end at 23,406.49. On Thursday, the key market gauge climbed 202.93 points.
The Topix index of all first section issues closed up 11.78 points, or 0.72 percent, at 1,636.64, after a 19.46-point advance the previous day.
The Tokyo market got off to a weak start, as selling took the upper hand following falls in the Dow and other major U.S. stock market yardsticks Thursday, which came after Democrats blocked a Republican-proposed bill for a novel coronavirus relief package in the U.S. Senate.
A rise in Dow futures, however, pushed the Nikkei and Topix indexes to the positive side later in the morning.
In the afternoon, the key indexes fluctuated tightly on the sunny side, as market players adopted a wait-and-see approach ahead of the leadership election in Japan’s ruling Liberal Democratic Party on Monday and monetary policy meetings of the U.S. Federal Reserve and the Bank of Japan next week, brokers said.
“Investors moved to buy back stocks in anticipation of a U.S. market rebound later on Friday,” said Yutaka Miura, senior technical analyst at Mizuho Securities Co.
Market participants also applauded the government’s plan to include trips to and from Tokyo in its Go To Travel tourism promotion program from Oct. 1, Miura said. The capital had been excluded from the subsidy scheme due to a spike in the number of coronavirus infections.
Brokers also said that the Tokyo market throughout Friday was supported by stable moves of the dollar-yen exchange rate.
Rising issues far outnumbered falling ones 1,601 to 480 in the TSE’s first section, while 92 issues were unchanged. Volume increased to 1.297 billion shares from Thursday’s 1.151 billion shares.
Railway operator East Japan Railway Co. and airlines ANA Holdings Inc. and Japan Airlines Co. attracted buying, thanks to the government’s plan to include Tokyo in its Go To Travel program.
Drugstore chain Sugi Holdings Co. surged 2.70 percent, after announcing strong same-store sales in August.
Among other major winners were game-maker Bandai Namco Holdings Inc. and clothing store chain Fast Retailing Co.
On the other hand, Sekisui House tumbled 4.01 percent, reflecting downward revisions to its operating profit and net profit outlooks for the year through January 2021.
Also on the negative side were automaker Suzuki Motor Corp. and mobile phone carrier KDDI Corp.
In index futures trading on the Osaka Exchange, the key December contract on the Nikkei average gained 120 points to end at 23,200.